EY Transformation

Indonesia MOF issues a regulation to implement BEPS Pillar Two | EY Indonesia Tax Alert

On 31 December 2024, Indonesia issued Implementing Regulations on Global Minimum tax under BEPS 2.0 Pillar Two, which includes Income Inclusion Rules, Domestic Top-up Tax, and Undertaxed Payment Rules. The regulation is effective for fiscal years beginning on or after 1 January 2025. There will be obligations to submit a Top-up Tax Return for GloBE, DMTT, and/or UTPR, a GloBE Information Return (GIR), and a Notification.

PMK-131: New Calculation of VAT Payable | EY Indonesia Tax Alert

On 31 December 2024, Indonesia Minister of Finance (MoF) issued Regulation No 131/ 2024 (“PMK-131”) in relation to New VAT Treatment. PMK-131 is the implementing regulation of Article 8A of Law No 8/1983 (VAT Law) which was last amended by Law No. 6/2023. PMK-131 is effective on 1 January 2025.

Tax Alert The Preliminary Stages – Applying the Arm’s Length Principle

The concept of an Indonesian Taxpayer gathering ‘proof’ during the tax audit process to support the existence and benefits of related party transactions, such as the receipt of services or the license of intangible property, is not new. However, the release of the Minister of Finance Regulation number 172 of 2023 (PMK 172) means that the time frame for Taxpayers to carry out the steps to gather this proof has moved forward to before a Local File is prepared for a specific tax year. PMK 172 also specifies that not having relevant ‘proof’ means that a related party transaction will automatically not be considered arm’s length.

Income tax treatments for Benefits in Kind (“BIK”)

On 27 June 2023, the Minister of Finance (MoF) issued Regulation No. 66/2023 (PMK 66) in relation to income tax treatments for Benefits in Kind (BIK). PMK 66 is the long-awaited implementing regulation for Article 32C paragraphs (d) and (n) of the Income Tax Law No 7/2021 (“HPP Law”) and Article 31 of Government Regulation No 55/2022 (GR 55). PMK 66 is effective 1 July 2023.

Integrity and compliance as one of B20 Indonesia priorities

Integrity in business is not about compliance box-ticking and risk management. Rather on how to protect the organization, its assets, and its reputation to secure long-term sustainable value.

New Government Regulation on Taxation of Benefits in Kind

GR-55 stipulates the types of benefits in kind that are taxable, tax exempt, and tax deductible, as well as determining their value for tax purpose. GR-55 also sets out the tax obligation for both the employer/remuneration provider and the recipient/employee.

Riding the wave of Indonesia’s financial services growth

Indonesia’s booming financial services sector is becoming increasingly sophisticated as new players look for exciting opportunities in this fast-growing nation.

Green bonds, the way to drive more sustainable development in Indonesia

Green bond issuance is growing in prominence as the public is aware of climate change's impacts. Surpassed the half-trillion mark for the first time since launching years ago. What is a green bond?

 How can carbon pricing help in reducing emissions?

Businesses should analyze the costs and benefits of reducing emissions through feasible mitigation solutions in the face of mandatory carbon pricing.